LIVERPOOL is second only to London for the number of people now living in its city centre, it was revealed last night.

LIVERPOOL is second only to London for the number of people now living in its city centre, it was revealed last night.

The figures mark a remarkable transformation for an area which had witnessed a seemingly irreversible decline in population for decades. Around 10,000 people have already set up home in the city centre - more than in similar core UK cities such as Manchester, Birmingham and Leeds.

And that number is expected to double by the time Liverpool becomes European Capital of Culture in 2008.

The research, commissioned by city centre regeneration agency Liverpool Vision and the city council, was drawn up by property research firm Jones Lang LaSalle.

A spokesman said: "Liverpool city centre's population continues to grow in sharp contrast to the city's population as a whole, which has declined over the past 20 years.

"Therefore, growth in city living is having a very positive effect overall."

The number of city centre residents has doubled in the past five years, from 5,000 people in 1995.

By 1999, with 9,000 residents, it had already well overtaken Manchester's urban population of around 5,000. Between 1999 and 2001, another 950 apartments and houses had been built in Liverpool centre and there are currently around 7,300 with planning consent or in the pipeline.

Developments such as the Kings Waterfront, the X-building, Unity building and Pall Mall have helped encourage a new breed of inner city dweller.

But although Liverpool is well ahead of its target for city living, the study warns that it needs to develop its infrastructure close to residential areas of the centre.

Three-quarters of those surveyed work in Liverpool - 53pc in the centre and a further 22pc elsewhere in the city.

A spokesman for Liverpool Vision said: "The study's findings will help shape the joint initiatives we have with the city council to create a more sustainable city centre population.

"Plans to introduce more family housing and support services into the Canning area are being developed with a number of registered social landlords."